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| Customer orders groceries on a mobile application using quick commerce service by GS Retail in Seoul, on June 30. Korea Times file |
By Kim Jae-heun
Coupang has launched the quick commerce service "Coupang Eats Market" in a bid to make a rebound from the fallout of a number of scandals that led customers to turn their backs on the online retailer.
Customers recently declared a boycott of the retail giant after founder Kim Bom-seok shunned responsibility for a fire that broke out at a logistics center in Icheon, last month, and was accused of bullying a member of a union. The company also took a passive approach to the death of a restaurant owner, whose demise in May was "linked" to his use of Coupang's food delivery service.
The company's attempt to recapture customers is by introducing a quick commerce service that puts the utmost priority on consumer convenience.
Coupang Eats Market plans to establish small-sized local fulfillment centers in various areas to deliver orders within 15 minutes; twice as fast as Baedal Minjok (Baemin).
The company hopes that its free delivery service will attract customers to Coupang Eats Market ― it only requires a 2,000 won minimum order. Baemin's B Mart requires customers to make a minimum 10,000 won purchase to get their order for a 3,000 won quick delivery fee.
Coupang's online order service has 16 categories including fruit, vegetables, salads, meat, fish and eggs, but currently, it is only available in Songpa, western Seoul.
"We are currently testing our service for customer convenience, and will expand it to other parts of Seoul including Gangnam," a Coupang official said.
Coupang Eats Market has rapidly gained popularity in Songpa with an increasing number of residents using the service amid the resurgence of COVID-19.
Its number of paid-membership users decreased from 10 million to 8 million after the fire in Incheon, but the figure had risen to 9.6 million recently.
The biggest problem facing Coupang, is the opposition from convenience stores that allege Coupang Eats Market hurts local businesses.
Convenience stores have been going through a tough time with declining sales affected by the pandemic and the increase in the minimum wage.
Many stores are considering whether to continue staying open after midnight. To combat the fourth wave of the COVID-19 pandemic, the government has restricted people from holding gatherings of over three people after six p.m. ― making it harder for convenience stores to see a rebound.
Convenience stores have already issued a statement protesting quick commerce service operators, not only against Coupang but also Baemin and Yogiyo.
